Making calls you don’t want to make: Calling your seller because of a Notice of Default list

About a year ago, I had listed a
home for sale in Beaverton,
Oregon and thought it was going to be an easy sell. In the
taking of the
listing I had asked how much they owed, what their interest rate was
and when
they bought the home. (You know all the traditional questions)

But, it seems the one
question I forgot to ask was… Are you
current on your payments? This one was a very important
question because it
seems they were not. I do have to admit that this was a mistake on my
part
because when I heard how much they owed and how much equity they had, I
thought
it was going to be an easy sell even if they were behind on payments.
(BOY WAS
I WRONG)

Two weeks later I received my
Beaverton area real estate Notice
of Default list from my local title company just like I do every Friday.
That
is when I noticed the address on the list as one of my listings. I
immediately
called the seller and asked them how they were doing and then asked
them if
they were presently making their payments on time.

Their answer actually rocked my
world a little! They said “NO,
we have equity and we need the money for a down payment on something
else in
another state that we are buying” I then said “That is great there is
one little
problem with your theory and I’m hoping we aren’t too late!”

The problem was that what they
thought they would get by not
paying payments was more money in their pocket at close,
but the exact opposite
was true, they were actually going to get less because of interest and
penalties
from their bank. Then to top it off, their credit was going to be
affected
enough that they may not be able to even get the home in this other
state.

Lucky for them, they were
actually already buying this on contract,
so there was no bank on the other end to deny them the loan at the last
minute,
but the catching up on the payments almost still cost them the new home
because
they ate up their savings to do it. We did close about 2 months later
after getting
a great offer and they ended up selling their RV to make up the
difference they
lost in penalties to pay the down payment on their new home.

So, if you are thinking of
selling your home in the
Beaverton area, please consult your real estate agent, lawyer and CPA
before
making any decisions on making or not making payments,
what you think you are
doing may not get the desired result and could cost you thousands in
the end.

Todd Clark is a
licensed Realtor who specializing in Washington County,
Oregon and also works both Clackamas and Multnomah Counties including
the cities of Aloha, Beaverton, Canby, Clackamas,
Gladstone, Gresham,
Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information
contained in these posts is copyrighted and cannot be
used without prior written approval authorization
from the author. If you are looking for an outstanding agent
please give Todd Clark a call he would love to help you in all your
real estate needs.

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I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.

What if there was a way you could search the MLS for FREE just like Realtors

Now you can access the MLS using similar tools as Realtors. You are in control of what you want to search for, and you can search the MLS at your leisure. The information you submit in the form below can also be used to put you on an automated system where you'll be emailed all homes that meet your search criteria. You'll get internet access to a website that includes pictures, prices, and addresses to real estate that's listed in the MLS!

Todd - This is absolute perfect timing. This is not something I normally do but I am going to team up with an agent and door knock some of the client TIPS I will be getting on some of these distressed owners. It won't be fun but if not me, someone else. I want to be able to help people before the desperation. You have some wonderful tips in this post.

An excellent post. I think it is difficult for sellers to access the correct information... This is a reminder for all of us to remember to ask ALL of the questions. I also do so when I am representing a Buyer and we add something in the addendum where the Seller warrants they are not behind, have not gotten a notice of default and will inform the buyer if anything changes.

Good thing that had a quick-draw agent in tow! Good thinkin' on your feet, and even though they lost a bit, I hope they were happy that you were doing your job in finding them out and setting them straight!

Amazing. It astounds me - the level of ignorance so many people have, yet they may still make major financial decisions and commitments like buying property, and as someone pointed out earlier, voting. Scary. In the dog show world my best friend and I have a code word for them. TSTL. (Too Stupid To Live) If they had to truly fend for themselves in the wild, they'd be lunch for the first predator to walk by them. Sad and scary.

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